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OBSERVATIONS <br />PERMIT #: M- 2000 -046 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: June 19, 2012 <br />This was a regular monitoring inspection conducted in order to check compliance of the operation with the <br />requirements of the Act, Rules, and the conditions of the permit. The Operator, Pioneer Sand Company, Inc <br />was represented during the inspection by Mike Ausburn. The Phillips Ranch Property Gravel Pit #2 is located <br />approximately 4 miles southeast of Florence, CO. The access road is about 1 mile north of Fremont CR 108 on <br />Fremont CR 19 (or Siloam Road). This is a 110c operation with the southwest permit boundary coincident with <br />another 110c operation (M- 1997 -097, Phillips Ranch Property Gravel Pit, #1 site) also operated by Pioneer <br />Sand Company. The other pit was inspected at the same time and summarized in a separate report. <br />Inspection: <br />Permit Boundary: The Permit sign was not properly posted at the time of the inspection. Only the permit sign <br />for the other gravel pit ( #1) was observed at the entrance (Photo 1). Mr. Ausburn pointed out the boundary <br />markers (Photos 2 and 3). <br />Pit & Permit Area: It appears material has been excavated for some time. All observed stockpiles were located <br />on the adjacent Phillips Ranch Property Gravel Pit (M- 1997 -097). The Phillips Ranch Property Gravel Pit #2 is <br />relatively flat and has no erosion problems. The area is fairly well self - revegetated (Photos 4 and 5). <br />Some tamarisk may be in the #2 pit, but the majority were observed in the #1 pit. The Operator should make <br />sure any tamarisk were observed in the vicinity of the pit bottom (Photo 6). <br />Adjacent Lands: No impacts were observed to adjacent properties. <br />Current Stipulations: <br />There are no current stipulations. <br />Records: <br />• The previous inspection was conducted 8/30/2007. One problem was cited and resolved with the <br />submission of the 2008 annual report. <br />• A review of annual reports indicates no mining activity has occurred since 2008. However, the Operator <br />indicated he is moving and selling stockpiles. The Division considers these types of as mining <br />• The 2012 annual report indicates the site identification sign is posted. <br />• The permit anniversary date is June 16. The operator is current with annual fees and reports through <br />2012 with the late submittal of the annual map. <br />• There is a $26,443 financial warranty (corporate surety) for the site. <br />• The post -mine land use is rangeland. <br />Bond: <br />The current financial warranty is a $26,443 corporate surety bond. The Division recalculated the financial <br />warranty amount using current unit costs. The revised bond amount is $34,212. However, the 2012 annual <br />report indicates 2.5 acres have been backfilled and graded. The Operator should continue reclamation activities <br />(i.e., revegetation) on these 2.5 acres and request a surety reduction or acreage release prior to the next <br />anniversary date to avoid a surety increase. <br />Page 2 of 4 <br />